In Forbes, Reuven Cohen looks at the state of internet access in Canada:
Before I get into what was discussed, I need to provide some context to the current state of Internet connectivity in Canada. To understand the Internet landscape in Canada is to endeavour into the realm of duopolies, bandwidth caps and mediocre Internet connections. As it stands today, Canada has effectively become the Digital Third World.
A recent video interview with The Globe and Mail’s Omar El Akkad and Netflix CEO Reed Hastings summaries the problems with cloud computing in Canada. Hastings’ specifically calls out capped Internet plans as compared to the rest of the world saying “Canada has the misfortune of being the country with the lowest internet caps maybe in the world but certainly in the developed world and in all of the Netflix world. In Mexico, Internet is largely uncapped; in the US it’s largely uncapped; in the UK it’s completely uncapped; in Canada there’s a number of providers with very low caps…I don’t quite understand it.”
Herein lies the problem, the widespread use of bandwidth caps in Canada is partially the result of a market defined by vast geographies and a limited population base. This has resulted in a highly concentrated market controlled by a small group of ISPs. Making things worse is a highly government controlled telecom industry that prevents foreign investments, particularly for wireless and broadband services. This combination of factors has led to one of the most restrictive markets for cloud computing as well as other internet related services found in any of the major industrialized nations today.
